Journal entry worksheet<12Record the August sales.Note: Enter debits before credits.Transaction2Record entryGeneral JournalClear entryDebitCreditView general journal> Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individualconsumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeemthose points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Basedon past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July2021, the company redeemed 10,200 points and sold additional product of $127,500, so it recorded $137,700 of revenue. Theaggregate stand-alone selling price of the purchased products is $137,700. Seventy percent of sales were cash sales, and theremainder were credit sales.Required:1. & 2. Prepare Supply Club's journal entry to record July and August sales. During August, customers redeem loyalty points on$61,200 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were credit sales.Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" inthe first account field.No1Transaction1CashSales revenueAccounts receivableSales revenueAnswer is not complete.General JournalDebit96,39041,310Credit96,39041,310 X

1.DateParticularsDebit ($)Credit ($)xxxCash (137,700 x 70%)96,390…

Answered: Prepare Supply Club's journal entry to…

Business

Accounting

Prepare Supply Club's journal entry to record July and August sales.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13RE: CoolShoes sells its elite tennis shoes to sports retailers throughout the country. When introducing...

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Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers earn one loyalty point for each dollar of goods purchased, but do not earn additional loyalty points for purchases that are made by redeeming loyalty points. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2024, the company redeemed 10,600 points and sold additional product of $132,500, so it recorded of revenue of $143,100. The aggregate stand-alone selling price of the purchased products is $143,100. Eighty percent of sales were cash sales, and the remainder were credit sales.…
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